Judge OKs $5.4M settlement over Transamerica retirement plan

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A federal judge has approved a $5.4 million settlement between Transamerica and its current and former employees, who accused the company of offering several poor-performing investments in its employee retirement plan.

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A federal judge has approved a $5.4 million settlement between Transamerica and its current and former employees, who accused the company of offering several poor-performing investments in its employee retirement plan.

The money would be divided among about 24,000 people, based on how long they had invested in the money and how much money they invested.

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According to the lawsuit, employees who invested in Transamerica’s retirement plan lost between $15 million and $20 million because some funds performed poorly compared to comparable ones that employees could choose not to have in the plan.

Attorney Charles Field, representing the employees, said the “settlement provides real and meaningful relief to the group”.

The lawsuit argued that Transamerica should have detected the problem fund sooner and changed options in its retirement plan because six fund employees could choose from comparable funds that underperformed by a significant margin over a 10-year period. Were.

A spokesperson for the company, which provides investment products and life insurance, said it maintains that the allegations are unfounded, but it has agreed to settle the case to avoid the time and expense of litigation.

The spokesperson said Transamerica is committed to offering employees a competitive retirement plan. Transamerica is based in Baltimore, but has major operations in Cedar Rapids, Iowa, where the lawsuit was filed, and in Denver.

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